Real Estate

Really confused, please help Ontario Tenant and landlord rules

  • Last Updated:
  • Aug 5th, 2019 8:39 pm
[OP]
Newbie
Feb 23, 2014
13 posts
Leamington

Really confused, please help Ontario Tenant and landlord rules

Hello,
I want to rent this small 2 bedroom house in a small city in southwestern Ontario, I read online and spoke to some people over social media, they are saying not so good things about giving it out for rent. Can you guys please enlighten me that, if i rent it to someone then what are my options if following things happens, please tell me as per your experience that how much time it will take to resolve following situations along with possible expenses of lawyer, if i have to involve any;

Question 1 : tenant stops paying rent, and will not evacuate either. Agreement is one year lease.

Question 2: tenant stops paying rent, and will not evacuate either. Agreement is month to month lease.

Question 3: tenant is regularly paying rent but I sold the house to someone else, Agreement is one year lease.

Question 4: tenant is regularly paying rent but I sold the house to someone else, Agreement is month to month lease.

Question 5: Tenant is bad, noisy, smokes inside house, loud, giving issues to neighbors, not keep house maintained and cleaned? What will I do in such case?


Please reply to these questions as per your experience, I really appreciate your valuable time to answer these questions. If possible, please share time, expenses that might involve to resolve these issues with court or without court.

Thank you very much and have a great day.
Last edited by jennie01 on Aug 3rd, 2019 3:12 pm, edited 1 time in total.
12 replies
Penalty Box
Aug 11, 2005
4175 posts
1427 upvotes
Scenario 6: stove and many other appliances breaking. How much will it cost?
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Deal Addict
May 12, 2014
2993 posts
2802 upvotes
Montreal
With respect, these should not be your first questions.

Your first question should be:
How do I properly screen applications myself?
Deal Addict
Jul 21, 2008
1420 posts
1421 upvotes
GTA
jennie01 wrote: Hello,
I want to rent this small 2 bedroom house in a small city in southwestern Ontario, I read online and spoke to some people over social media, they are saying not so good things about giving it out for rent. Can you guys please enlighten me that, if i rent it to someone then what are my options if following things happens, please tell me as per your experience that how much time it will take to resolve following situations along with possible expenses of lawyer, if i have to involve any;

Can you tell us why people are saying you shouldn’t rent it out? Is the property in terrible shape? What kind of financial situation are you in? We need more information about your personal situation and the property itself before we can answer your questions with accuracy.
Deal Guru
Feb 29, 2008
14807 posts
11147 upvotes
Tarrana
Proper screening makes life much easier for you. Don’t cur any corners here and don’t make any emotional decisions. Don’t believe anything until it can be proven.

Also familiarize yourself with the laws. There is no point renting your place out if you don’t know the rules.

All of your questions can be easily answered with a bit of research on your part.
[OP]
Newbie
Feb 23, 2014
13 posts
Leamington
Slono wrote: Can you tell us why people are saying you shouldn’t rent it out? Is the property in terrible shape? What kind of financial situation are you in? We need more information about your personal situation and the property itself before we can answer your questions with accuracy.
Thanks for replying, people are saying about not renting out because they claimed that they had hard time tenant not paying rent and then evacuating the property. My personal situation is good and property is in great shape and No loan or mortgage. My concern is, if i want to proceed with renting it out, how should I proceed? Month to month? lease? and what to get written in agreement so it makes my life easier, and what type of checks should I get run up on him and anything else if i have missed.
Regards
[OP]
Newbie
Feb 23, 2014
13 posts
Leamington
JayLove06 wrote: Proper screening makes life much easier for you. Don’t cur any corners here and don’t make any emotional decisions. Don’t believe anything until it can be proven.

Also familiarize yourself with the laws. There is no point renting your place out if you don’t know the rules.

All of your questions can be easily answered with a bit of research on your part.
What type of checks should I run? I heard about getting police clearance, credit check, work reference check, anything else I am missing?
should I go for family, single person or students? and why?
I am not cutting any corners, house is well maintained and is in great condition with lots of storage in half finished basement including 2 car parking driveway and 24feet garage in the back yard.

Thanks so much for replying.
Banned
Jul 8, 2017
628 posts
699 upvotes
NA
If there is no loan or mortgage left on the property you do not need long term tenant then, why not just do Airbnb and save yourself the hassle to deal with eviction, rent non-payment and screening tenant.
Deal Addict
Feb 19, 2019
1240 posts
1747 upvotes
Stouffville ON
You should understand the rules, the following will be a good starting point for you to read:
https://www.ontario.ca/page/renting-ontario-your-rights
Since you are really confused I suggest taking your time to learn as much as possible before making a decision, as this is very important.
Being a landlord is not for everyone, and there are many horror stories, yet at the same time many have been very successful real estate investors who have built some serious wealth, if done correctly it can be very profitable.
Let me ask you few questions:
1) Are you renting the whole house or just part.
2) What are your reasons for wanting to be the landlord.
3) Where will you live? In the house, near by, in a different city or country?
4) Who will be managing the rental.
5) What is the location of the rental, is it in a lovely city with tourism and an opportunity for Airbnb, or a place where only locals will rent (if you let us know the location someone on this forum will most likely be familiar with the market there).
6) What is the rental market there, is there a shortage of rental units, what is your market target, what is around?
7) Have you calculated the potential profit?
8) What other options do you have for this property, sell and invest in something else, keep empty?
9) Is your plan to rent it out long term or move back after certain period of time.
10) Have your considered using the equity you have in the house for other investments (real estate or otherwise).
You have already received some good advice, basically what I am saying is help us help you, the more information you provide the more help you will receive.
Full Time and Full Service Realtor
[OP]
Newbie
Feb 23, 2014
13 posts
Leamington
senasena wrote: You should understand the rules, the following will be a good starting point for you to read:
https://www.ontario.ca/page/renting-ontario-your-rights
Since you are really confused I suggest taking your time to learn as much as possible before making a decision, as this is very important.
Being a landlord is not for everyone, and there are many horror stories, yet at the same time many have been very successful real estate investors who have built some serious wealth, if done correctly it can be very profitable.
Let me ask you few questions:
1) Are you renting the whole house or just part.
2) What are your reasons for wanting to be the landlord.
3) Where will you live? In the house, near by, in a different city or country?
4) Who will be managing the rental.
5) What is the location of the rental, is it in a lovely city with tourism and an opportunity for Airbnb, or a place where only locals will rent (if you let us know the location someone on this forum will most likely be familiar with the market there).
6) What is the rental market there, is there a shortage of rental units, what is your market target, what is around?
7) Have you calculated the potential profit?
8) What other options do you have for this property, sell and invest in something else, keep empty?
9) Is your plan to rent it out long term or move back after certain period of time.
10) Have your considered using the equity you have in the house for other investments (real estate or otherwise).
You have already received some good advice, basically what I am saying is help us help you, the more information you provide the more help you will receive.
Let me ask you few questions:
1) Are you renting the whole house or just part. Whole house.
2) What are your reasons for wanting to be the landlord.Investment and maybe a little extra income
3) Where will you live? In the house, near by, in a different city or country?I live in an another house which is 3 minute drive to my newly purchased house
4) Who will be managing the rental.I will be managing the rental
5) What is the location of the rental, is it in a lovely city with tourism and an opportunity for Airbnb, or a place where only locals will rent (if you let us know the location someone on this forum will most likely be familiar with the market there).There is no scope of AirBNB but its close to educational institutions seeing thousands of international students every session, but i dont want international student, if I had no choice then i might go for them as a last resort, I need opinion on this students rental please
6) What is the rental market there, is there a shortage of rental units, what is your market target, what is around? There are shortage of houses right now, people are selling houses for 20-30K above asking price on a property worth 110K, I do not have any market target in mind right now, Around is educational institution college/uni/downtown
7) Have you calculated the potential profit? yes
8) What other options do you have for this property, sell and invest in something else, keep empty? I have to rent it out for now, I might sell it next year or i might move in, it all depends on my relationship which is working out for now but future is unsecure
9) Is your plan to rent it out long term or move back after certain period of time. Rent it out and see how it goes else I can also move in there but its not critical for me to move into new house but if I break up then I might move in
10) Have your considered using the equity you have in the house for other investments (real estate or otherwise).I didnt understand the question as I have already invested in this house
11) I consider myself as a handy person, I know how to work with tools and stuff as well
I really appreciate your valuable time to write all these questions.
Thank you
Deal Addict
Feb 19, 2019
1240 posts
1747 upvotes
Stouffville ON
Based on your situation renting it is probably the only option.
You are handy, that’s great, a big plus when having rentals.
If the property is around educational institution your natural market would be students. This does provide additional risks since young people do stupid things, on the other hand you will be able to raise rents every year without any issues since you would have new tenants each year.
Other landlords can hopefully chime in with their own experiences when dealing with difficult tenants, your goal will be to do anything possible to avoid such situations, and proper screening will be the most important. There is plenty of information in the link below, you may want to read and watch, it will answer many of your questions posted in this thread.
https://landlordselfhelp.com/landlord-learning-tips/

10) Have your considered using the equity you have in the house for other investments (real estate or otherwise).I didnt understand the question as I have already invested in this house

Here is what I meant: since the house is paid off you can borrow against the house (most likely in the form of Heloc, or home equity loan) and invest in another investment (real estate or otherwise), you will take advantage of the assets you have to make more money (potentially, nothing is guaranteed). Let’s say you are able to get $80K Heloc on your current rental property, that $80K would be sufficient to put a downpayment for another rental property, the interest on the 80K loan will be tax deductible, you finance the balance of the new property with a mortgage, and you now have the tenant paying for the second rental property. It will not work if you want to sell your current rental property next year, and a lot more research should go into doing it, but gives you an idea that you can use your assets and leverage to build wealth.
Full Time and Full Service Realtor
Deal Guru
User avatar
Mar 23, 2008
12431 posts
8941 upvotes
Edmonton
jennie01 wrote: Hello,
I want to rent this small 2 bedroom house in a small city in southwestern Ontario, I read online and spoke to some people over social media, they are saying not so good things about giving it out for rent. Can you guys please enlighten me that, if i rent it to someone then what are my options if following things happens, please tell me as per your experience that how much time it will take to resolve following situations along with possible expenses of lawyer, if i have to involve any;

Question 1 : tenant stops paying rent, and will not evacuate either. Agreement is one year lease.

Question 2: tenant stops paying rent, and will not evacuate either. Agreement is month to month lease.

Question 3: tenant is regularly paying rent but I sold the house to someone else, Agreement is one year lease.

Question 4: tenant is regularly paying rent but I sold the house to someone else, Agreement is month to month lease.

Question 5: Tenant is bad, noisy, smokes inside house, loud, giving issues to neighbors, not keep house maintained and cleaned? What will I do in such case?


Please reply to these questions as per your experience, I really appreciate your valuable time to answer these questions. If possible, please share time, expenses that might involve to resolve these issues with court or without court.

Thank you very much and have a great day.
All your questions are straightforward landlord tenant issues, and easily found online or in this forum. But to spell it out...

Q1 and Q2 are the same answer. As the landlord, you need to decide if you want to attempt to evict the tenant or collect the rent and continue the lease. In all likelihood, the LTB will give the tenant multiple opportunities to catch up on the rent no matter what you wish. Your best bet is to document EVERY late payment with the official LTB forms, so you can provide a history of issues, if it comes down to it. If the tenant shows a history of not paying on time, that is one of the (few) allowed reasons for choosing not to renew the tenant’s lease when their annual lease is up.

Q3/Q4. If you sell the property, the tenant has the option of staying until the end of their lease term. That may mean one year ( if you sold the property the day they signed an annual lease), or in the case of a month to month lease, it may mean offering 60 days notice to the tenant that the new owner wants the property for personal use. If the new owner wants to rent out the property, they would legally need to allow the tenant to continue their lease on the same terms as they had with you.

Q5. If the tenant is damaging your property or infringing on your (or another tenant’s) right to enjoy the property, you can file the forms telling the tenant they have xx days to remedy the situation or you’ll apply to evict. If they stop doing that but start again, eventually you can file to evict. However... they’re not required to meet YOUR standard of living conditions. So what you consider dirty/noisy/“issues” may not be relevant if they’re not actually breaking any bylaws. There’s no “right answer” to this question.

And you didn’t ask, but keep in mind you’re responsible for the maintenance and upkeep of the property. You should speak to a lawyer about structuring your contracts if you expect the tenant to shovel snow or mow the lawn (or otherwise maintain the property). Also note that you cannot evict the tenant for personal use while they have an annual lease with you. You would have to wait for them to be on month to month, and then you’d have to give 60 days notice plus pay one month’s rent as compensation.

C

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